A study on the sensory experiences and the influence of lovemarks on the overall brand equity and price premium in cafe retail outlets

Abstract

The purpose of this study were: (1) to develop a reliable and valid scale for measuring sensuality, (2) to identify the influence of sensuality on lovemark experience in the Indian café retail outlets, (3) to test the relationship among brand loyalty, overall brand equity and price premium. This research is a study on the sensory experiences, lovemark experiences, brand loyalty, overall brand equity and price premium in the café retail outlets in Bengaluru. Sensuality construct consists of five sub-constructs namely sight, sound, smell, taste and touch according to Roberts (2004, 2006). Lovemarks is a combination of high brand love and high brand respect (Roberts, 2004). Valid and reliable measure of brand love and brand respect, brand loyalty, overall brand equity and price premium were adapted from previous studies with minor modifications. A new scale was developed and validated to measure the sensuality elements. The survey conducted on 400 respondents from café retail outlets in Bengaluru. The firms were involved in food and beverage sector. A number of steps were involved in validating the scale. The questionnaire was developed based on literature review, comments from academicians and from the experts. Rigorous statistical methods were used to access and validate the constructs. The methods used were Structural equation modeling using PLS path modeling software, reliability and validity analysis. The research findings support the notion that sensory experiences in the store can lead to brand loyalty and increase the overall brand equity thereby influence the willingness to pay a price premium. When consumers senses are evoked positive sensory experience and positive memories are created with the brand. SEM was used to test the conceptual model which examined the relationship among the variables (sensuality, brand love, brand respect, brand loyalty, overall brand equity and price premium) and the results were positive. newline